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Common stock ($10 par value; 46,000 shares outstanding) Preferred stock, 15% ( $10 par value, 9,100 shares outstanding) Retained earnings 5460,000 91,000 286,500 The board
Common stock ($10 par value; 46,000 shares outstanding) Preferred stock, 15% ( $10 par value, 9,100 shares outstanding) Retained earnings 5460,000 91,000 286,500 The board of directors is considering the distribution of a cash dividend to the two groups of stockholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred stock is noncumulative, the total amount of dividends is $36,500 Case B: The preferred stock is cumulative; the total amount of dividends is $40,950 Case C: The preferred stock is cumulative; the total amount of all dividends is $91,100 Required: 1. Compute the amount o dividends, in otal and per share, that would be payable to ea casso stockholders for each case Round IV denda per share to 2 decimal places. Dividends Dividends per Share Total Preferred Common Preferred Common Case A Case B Case C
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